The calculations below outline how an intrinsic value for
SJVN
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
SJVN's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
SJVN's earnings available for a low price, and how does
this compare to other companies in the same industry?

High Growth Checks

SJVN's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

SJVN's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

Has the earnings growth in the last year exceeded that of the
Electric Utilities
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
SJVN
has a total score of
2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

NandSharma

COMPENSATION

₹6,946,632

AGE

54

TENURE AS CEO

1.2 years

CEO Bio

Mr. Nand Lal Sharma has been Chairman and Managing Director of SJVN Limited since December 01, 2017. Mr. Sharma served as the Director of Personnel at SJVN Limited from March 22, 2011 to November 30, 2017 and served as its an Executive Director of Human Resources since joining in July 28, 2008. Mr. Sharma is an officer of HP State Administrative Services. Prior to SJVN Limited, he served as special secretary (General Administration Department and Health) and Director Ayurveda with GoHP. He has been a Director of SJVN Limited since March 22, 2011. Mr. Sharma holds a Masters Degree in Business Administration from the University of Ljublijana, Slovenia. He serves as director of SJVN Thermal Private Limited and SJVN Arun-III Power Development Company Private Limited and Holds an M.Sc in Agricultural Economics.

CEO Compensation

Nand's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Nand's remuneration is lower than average for companies of similar size in India.

Management Team Tenure

Average tenure and age of the
SJVN
management team in years:

4.8

Average Tenure

58.5

Average Age

The tenure for the SJVN management team is about average.

Management Team

Nand Sharma

TITLE

Chairman & MD

COMPENSATION

₹7M

AGE

54

TENURE

1.2 yrs

Amarjith Bindra

TITLE

CFO, Director of Finance & Whole Time Director

COMPENSATION

₹5M

AGE

59

Soumendra Das

TITLE

Compliance Officer & Company Secretary

COMPENSATION

₹3M

TENURE

7.2 yrs

Rakesh Bansal

TITLE

Director of Electrical & Whole Time Director

COMPENSATION

₹6M

AGE

58

TENURE

6.3 yrs

Kanwar Singh

TITLE

Director of Civil & Whole Time Director

COMPENSATION

₹5M

AGE

58

TENURE

3.3 yrs

A. Mukherjee

TITLE

General Manager of Personnel and Administration

AGE

60

S. Pathak

TITLE

General Manager of Information Technology & Communications and General Manager of Electrical Design

News

Simply Wall St News

What Investors Should Know About SJVN Limited's (NSE:SJVN) Financial Strength

While small-cap stocks, such as SJVN Limited (NSE:SJVN) with its market cap of ₹101b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies,

Why You Should Care About SJVN Limited’s (NSE:SJVN) Low Return On Capital

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

What To Know Before Buying SJVN Limited (NSE:SJVN) For Its Dividend

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, SJVN Limited (NSE:SJVN) has paid dividends to shareholders, and these days it yields 8.2%. … Let's dig deeper into whether SJVN should have a place in your portfolio.

How Good Is SJVN Limited (NSE:SJVN), When It Comes To ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows SJVN has a return on equity of 11% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

SJVN Limited (NSE:SJVN) Has Attractive Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company that has been able to sustain great financial health, trading at an attractive share price.

Do You Like SJVN Limited (NSE:SJVN) At This P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how SJVN Limited's (NSE:SJVN) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

What does SJVN Limited's (NSE:SJVN) Balance Sheet Tell Us About Its Future?

While small-cap stocks, such as SJVN Limited (NSE:SJVN) with its market cap of ₹105.1b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Will SJVN Limited (NSE:SJVN) Continue To Underperform Its Industry?

and want to learn about Return on Equity using a real-life example. … But what is more interesting is whether SJVN can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of SJVN's returns.

Interested In SJVN Limited (NSE:SJVN)? Here's How It Performed Recently

Investors with a long-term horizong may find it valuable to assess SJVN Limited's (NSE:SJVN) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … Was SJVN's recent earnings decline indicative of a tough track record. … SJVN's trailing twelve-month earnings (from 31 March 2018) of ₹12.22b has

Should You Be Tempted To Buy SJVN Limited (NSE:SJVN) Because Of Its PE Ratio?

and want to begin learning about how to value company based on its current earnings and what are the drawbacks of this method. … SJVN Limited (NSE:SJVN) trades with a trailing P/E of 9.1x, which is lower than the industry average of 11.5x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind

Company Info

Map

Description

SJVN Limited, together with its subsidiaries, engages in the generation and sale of power in India, Nepal, and Bhutan. It operates the Nathpa Jhakri Hydro Power Station with a capacity of 1500 MW located in Shimla district, Himachal Pradesh, India; and the Rampur Hydro Power Station with a capacity of 412 MW in Kullu District, Himachal Pradesh. The company also operates the Khirvire Wind Power Plant with a capacity of 47.6 MW in Nashik District, Maharashtra; the Charnakha Solar Power Plant with a capacity of 5 MW in Patan District, Gujarat; Sadla Wind Power Project with a capacity of 26 MW in Surendranagar district, Gujrat; and an 86 km cross border transmission line with a capacity of 400 kV from Muzaffarpur to Sursand. In addition, it provides consultancy services in the field of hydro electric projects, highway tunnels/railway tunnels, etc. The company was formerly known as Satluj Jal Vidyut Nigam Limited and changed its name to SJVN Limited in September 2009. SJVN Limited was incorporated in 1988 and is based in Shimla, India.

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